Realtors

It’s so common. I always ask the question to our prospects who are realtors, ‘”How do you receive your commissions?” Most come back to me with a simple , “I receive them in my checking account.” And most pay ordinary income tax on their earnings.

Here is a secret…you’re a business, so structure your “Business” as a business, not a sole proprietorship. The following should be confirmed by your CPA.

Set up an LLC that files as a S-corp. Ever heard of Warren Buffet? He once said that he paid, percentage wise, less taxes than his secretary. How is that possible? It’s all in how receives his income. How do you receive your income?

Deductions. Depending how your “business” is structured, deductions can be a big savings. Mileage, advertising, entertainment.

Set up a retirement plan. As a small business, you have the opportunity to set up a 401(k), SEP or a Simple IRA. Great way to save for the future.

With 2015 tax’s due this month, begin to plan for 2016 tax season now. For more information on this and other financial planning strategies, contact me, Trent Grinkmeyer, at 205-266-7509 or email me at trent@grinkmeyerleonard.com

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Trent Grinkmeyer, Valerie Leonard, Jamie Kertis and Caleb Bagwell are Registered Representatives and
Investment Adviser Representatives with/and offer securities and advisory services through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser. Fixed
insurance products and services offered through Grinkmeyer Leonard Financial, Grinkmeyer Leonard
Benefits Group, or CES Insurance Agency. Grinkmeyer Leonard Benefits Group and their leadership consulting services are separate and unrelated to Commonwealth. This communication is not intended to replace the advice of a qualified tax advisor or attorney. This communication is strictly intended for individuals residing in the following states: AL,CO,FL,GA,KY,LA,MD,MS,OK,PA,SC,TN,TX. No offers may be made or accepted from any resident outside of these states due to various state regulations & registration requirements regarding investment products & services. Please review our terms of use here: http://www.commonwealth.com/termsofuse.html